Bankruptcy Law

1. The liquidation procedure shall be initiated pursuant to a court decision as specified in Article 41 or Article 90 of this Law, or paragraph (2) of this Article. 2. The court shall set a date for considering the petition for the initiation of the procedure within 40 days from the date of filing, and shall notify the petitioner and debtor of the hearing date within five days from the date of registering the petition. The court shall decide as follows: a) Initiate the procedure if: I. the debtor is distressed or bankrupt; II. it finds, based on information submitted thereto, that the debtor is unlikely to remain in business and that his assets are sufficient to cover the expenses of the liquidation procedure; or III. the petitioner provides the information and documents referred to in Article 93 of this Law. b) Reject the petition if: I. the petition does not satisfy the statutory requirements, or is unjustifiably incomplete; II. it finds, based on information submitted thereto, that the debtor is likely to remain in business and settle the claims of creditors within a reasonable time; III. the petitioner acts in bad faith or the petition involves abuse of the procedure; or IV. the debtor’s assets are insufficient to cover the expenses of the liquidation procedure. If the court rejects the petition, it may order the initiation of another suitable bankruptcy procedure. c) Postpone the hearing for a period not exceeding 21 days to provide the court with any additional information or documents it requests. Such information and documents shall be submitted on the set date and prior to the date set for the postponed hearing. The court shall decide to either initiate the procedure or reject the petition in accordance with the provisions of this Article. 3. The court shall notify the debtor, who fails to attend the hearing, of its decision within five days from the conclusion of the hearing.